With Ever Given still blocking traffic in the Suez Canal, the global trade, as well as shipping, is starting to experience the results of the blockage of a major ship route.
The Panama-flagged Ever Given got grounded and stuck near the Red Sea entrance, blocking traffic in the Suez canal, on March 24.
The vessel, which is owned by Japan’s Shoei Kisen, had left from from Yantian, China, heading to Rotterdam, when the incident took place.
As a result of the blockage, a large number of ships is waiting on either side of the waterway, to pass through the canal. In fact, as Bloomberg reports, at the day of the incident, more than 100 ships were waiting for their turn, to sail through the Suez Canal.
Now, Reuters reports that Smit Salvage and Japan’s Nippon Salvage had been appointed to work alongside its captain and the Suez Canal Authority in order to refloat the ship.
Additionally, according to the Suez Canal Authority, traffic through the canal is currently temporarily suspended, as activities to refloating the ship are taking place. In fact, on March 24, only 13 ships sailed from Port Said within the northern convoy.
According to information, dredgers are now attempting to free the ship’s bulbous bow, with numerous tugs trying to pull it free.
Commenting on the impact the incident had on global shipping, Wood Mackenzie says that the largest impact is on container shipping.
Nevertheless, except for container ships, Wood Mackenzie adds that there are also 16 laden crude and product oil tankers that are expected to transit the canal, and that have been delayed by the incident.
Moreover, regarding LNG, at least 15 ships that were planned to transit the canal, had to wait at anchorages. Since the incident, more ships have arrived, increasing the waiting line close close to the Northern and Southern entrances as well as within the canal itself.
The Suez Canal is considered a key channel for LNG ships, as about 8% of global LNG trade sails through this route.
